By Martin Heubel, Amazon Strategy Consultant at Consulterce
Have you been asked for longer payment terms by Amazon?
You’re not alone.
Vendor Managers often request changes like:
- EOM instead of NET invoicing
- 120 instead of 60 payment days
- Higher Quick Pay Discounts
Take the following example:
Your Vendor Manager asks for 90 instead of 60 NET payment terms.
Sounds like a reasonable request?
Well, those extra 30 days will cost you £82k+ in cash flow for each £1m in revenue.
On a £10m account, this reduces your cash flow by over £820k!
Want an easy way to assess the impact of payment term changes with Amazon? – Use my free online calculator.
For further information and support, contact Martin Heubel here
